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#1 Tuesday 7th May 2013 09:23:54

mikerow
Verified Member
From: Norfolk
Registered: Tuesday 23rd August 2005
Posts: 363
Website

Depreciation

Doing my own tax this year.
Looking back on last year I see that an amount for depreciation was taken off my net profit.
Is that the value of the car as of April 2012 - its value this year.
It appears that this amount is then taken off the net profit is that correct?


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Driving should be fun

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Tuesday 7th May 2013 09:23:54

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Re: Depreciation



#2 Tuesday 7th May 2013 21:15:30

ralge
Verified Member
From: Sheffield
Registered: Thursday 11th January 2007
Posts: 320

Re: Depreciation

Value of car at beginning of last tax year less depreciation taken in last tax year = written down value carried forward into your next tax year and so on.


DSA Fleet Trainer, RoSPA Dip, PTLLS, Safed for Vans, NDAC/Speed Awareness on-road trainer, RoSPA RoAD Test Examiner.

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#3 Wednesday 8th May 2013 06:37:05

MGM
Verified Member
From: Surrey
Registered: Monday 24th October 2011
Posts: 861

Re: Depreciation

You can't claim for depreciation as such. There's a box on your tax return for Capital Allowances, and you need to put the appropriate amount in there. The notes explain how much you're allowed to claim.

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#4 Wednesday 8th May 2013 08:31:00

kjmcculloch
Member
Registered: Tuesday 16th April 2013
Posts: 14

Re: Depreciation

As a duql controlled car its not classed as a car for capital allowance purposes but rather as plant and machinery.  This means it's appropriate to claim annual investment allowance, or you can add it to the pool to be written down.  The point is if you claimed the whole amount last year as AIA there will be no more to claim, if it was added to the pool you can continue to write it down.

As has been said depreciation is not allowable, but you should continue to calculate it for your profit statement and statement of financial position.  This gives a true and accurate reflection of the value of your business.

Kris


I'm an accountancy provider for driving instructors.  Feel free to visit my website dedicated to driving instructors.

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#5 Wednesday 8th May 2013 09:08:49

mikerow
Verified Member
From: Norfolk
Registered: Tuesday 23rd August 2005
Posts: 363
Website

Re: Depreciation

That's great thanks
Form now submitted


http://www.learnnpass.co.uk/

Driving should be fun

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